Expalin investment intermediaries, Investment intermediaries An investm...

Investment intermediaries An investment intermediary includes finance companies, mutual funds, investment banks and securities firms.

Example of securitization,

Currency, You have the following limited information upon which to base you...

You have the following limited information upon which to base your decision as to which is the better of two alternative funding arrangements: ? Alternative 1 is to arrange funding

Financial control, Internal capital rationing is used by firms for exercisi...

Internal capital rationing is used by firms for exercising financial control. How does a firm achieve this?

Determine the management buy-outs, Determine the Management buy-outs ...

Determine the Management buy-outs Management buy-outs (MBOs) The management of company buy out the shareholders. Management will usually require financial backers (ventu

Valuing an option-free bond, To value an option-free bond, we must de...

To value an option-free bond, we must determine the on-the-run yield curve for the particular issuer whose bond we have to value. This on-the-run yield curve used

Operating cycle, applicability of an operating cycle in a vegetable growing...

applicability of an operating cycle in a vegetable growing business

Define why it is hard to maintain a fixed exchange rate, Once capital marke...

Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so. Answer: one time capital markets are integrated int

Hurdles in implementation of securitization, The following are considered t...

The following are considered the major stumbling blocks: The process becomes expensive because of the stamp duty payable. It also

Conversion price, It is the exercise price at which the investor or...

It is the exercise price at which the investor or the bondholder exchanges the bond for shares.